Mexico’s energy reform has set the stage for significant changes in exploration and development activity in Mexican waters, and the opportunities for collaborative engagement with existing offshore players in U.S. waters could define how oil and gas is developed and produced in the Gulf of Mexico for years to come. This daylong conference will focus on the latest developments and emerging opportunities in offshore oil and gas regulation, safety and environmental protection. There will be discussion of the state of reform efforts in Mexico, the potential impact of these reforms on the recently approved transboundary hydrocarbon agreement, the reforms as a catalyst for transboundary cooperation in oil and gas, the prospect of common safety and environmental expectations, and emerging regulatory opportunities.

Mexico will publish between March and April the new number of fields of shale and other more expensive oil and gas deposits to be tendered under an energy reform finalized last year, the National Hydrocarbons Commission (NHC) said on Monday.

The government has for weeks signaled the need to scale back some costlier fields amid a sharp drop in oil prices.

Mexico’s state oil company, Pemex, said Thursday that it had proposed an oil swap with the United States, potentially ushering in the first sustained crude imports by Mexico from its northern neighbor after years of self-sufficiency.

Pemex said it had set out a plan to import up to 100,000 barrels a day of light crude and condensates to mix with its own heavier crude at domestic refineries. In exchange, Mexico would provide the United States with heavier Mexican crude for processing at U.S. refineries, and would use the imports from the United States to boost local gasoline and diesel output.

An official at Pemex said the oil swap could go ahead as soon as the first quarter of this year.

The December 2013 Constitutional Reform and August 2014 secondary legislation to permit private investment in Mexico’s oil and gas sector represents significant opportunities for private oil and gas companies. While overall geopolitical risk landscape in Mexico is low, cartel-related violence and other criminal activities continue to draw concern from international oil companies and other foreign investors. Homicide, kidnapping, extortion, attacks on facilities and organized public unrest challenge regional governance and have the potential to impact a number of stages of the oil and gas value chain. As foreign energy companies prepare to bid on Round One contracts, the Mexican Government, state security entities, and civilian security organizations have begun to put in place the elements of a more secure operational environment.

This case study analyzes the Mexican Government’s response to recent threats to and attacks against energy infrastructure and personnel in Tamaulipas and Veracruz. The government is addressing the issue of cartel-induced violence in Tamaulipas and Veracruz by mobilizing security frameworks for newly established and existing state law enforcement entities and the Military. The security arrangements, that include policing of major ports and protecting Pemex facilities and operations, should help the oil and gas industry to better absorb the financial risks to its business operations.

In February 2014, the leaders of the three North American nations met in Toluca, Mexico, and determined a range of measures to enhance regional competitiveness, including new initiatives on transportation infrastructure, borders and research cooperation. Furthermore, the leaders agreed that, before the end of 2014, a North American Energy Ministers Meeting should take place to “define areas for strong trialteral cooperation on energy.” What these areas might be is still unannounced, but with the successful passage of energy reform legislation through Mexico’s Congress in December 2013, and secondary legislation in August 2014, many of the previously existing barriers to cooperation on oil and gas markets have now disappeared.

The prospects for an energy abundant North America are compelling. Combined, the three countries’ oil production compares favorably with those of the Middle East. As the United States surpassed Saudi Arabia as the world’s largest producer, and with both Mexico and Canada on the verge of significant increases in production, North America’s long-standing position as a hydrocarbons importer will then be reversed. The outlook for North American energy is therefore bright, and the transformation in the regional energy paradigm has been dramatic. However, to achieve the full potential of this newly discovered regional energy wealth, it will be necessary to more fully integrate the three countries’ energy markets. This paper argues that, in order to make North American energy independence a reality, there are several main areas that require attention from the three governments, working together, to make the transition to an integrated North American energy system.

North America is fast becoming the epicenter of a transformation in global energy. Canada, Mexico and the United States are bringing to market huge new energy resources that were too expensive or politically risky to exploit until recently. According to the Energy Information Administration, North American oil and gas growth is expected to exceed all of OPEC’s over the next decade.

But despite North America’s huge energy potential, the United States, Mexico, and Canada all face serious obstacles in getting their energy resources to market. Skills gaps and low public support for energy infrastructure stand in the way of a potentially rich North American energy future. As the three North American energy ministers prepare to meet in Washington on December 15th, they must develop innovative policy solutions to overcome these barriers and create the necessary support structure to fully realize North America’s emerging energy boom.